rudd gives hint of solar policy review

Maybe he's stopped talking and might be listening

AAP

Prime Minister Kevin Rudd has raised prospects that the government's unpopular move to means-test the solar panel rebate scheme could be reviewed.

But Mr Rudd said a budget always contained unpopular measures and means-testing was a difficult challenge as it meant some people would miss out.

"I have said before that as we approach the finalisation of the emissions trading scheme, which is also part of our core response to dealing with the challenge of climate change, we will continue to refine and fine-tune all of our policy settings at renewable energy, but also the necessary supports also for low and middle income earners," he told ABC Radio.

"As we move towards an emissions trading scheme in response to the Garnaut report dealing with the totality of the climate challenge, then of course we are going to be looking right across all our measures in support of renewable energies but also other measures which support the family budgets at a time of transition."

The program, introduced by the Howard government, offered households a rebate of up to $8,000 to offset the cost of installing solar panels.

In its first budget, Labor introduced a means-test for the rebate, limiting it to households earning less than $100,000 a year.

Opposition Leader Brendan Nelson said on Thursday this was bad for the environment and had brought the solar panel industry to its knees with numerous cancelled orders.

Mr Rudd said means-testing of solar panels was in line with the former government's $100,000 means-test for solar hot water systems.

He said the budget did significantly increase the allocation for the solar panels rebate scheme.

There were also additional programs to fit solar panels to all secondary schools as well as a green loans fund for individual families for installation of energy efficiency measures.

"When you bring in a tough budget in tough national and global economic circumstances, where inflation is on the loose, which is pushing up interest rates, and interest rates in turn have a huge effect on small businesses and have a huge effect on families and the ability to pay the mortgage, our first responsibility in the country is to take some tough and unpopular decisions," he said.

"On the overall discipline of the budget, a $22 billion surplus is made up of individual measures, each of which is tough, many of which are unpopular. I accept that."